To solve the following problem, it is recommended to use Excel
To solve the following problem, it is recommended to use Excel.
Table 1 provides the GDP components expenditures and the current account balance amount at constant price 2010 (in Million US Dollars)
Table 1.UAE Expenditure, 2017 – 2019 (Million Dollars) at constant Price 2010
| EXPENDITURE | 2017 | 2018 | 2019* |
| Final Consumption Expenditure : | 173792.00 | 179416.00 | 203809.00 |
| Government Expenditure | 44964.00 | 42732.00 | 48829.00 |
| Private Expenditure | 128827.00 | 136684.00 | 154981.00 |
| Fixed Capital Formation | 71019.00 | 73579.00 | 73595.00 |
| Change In Stocks: | 49343.00 | 32889.00 | 38067.00 |
| Gross Fixed Capital Formation | 120362.00 | 106468.00 | 111662.00 |
| Export of Goods And Services : | 372072.00 | 414864.00 | 402704.00 |
| Imports of Goods And Services : | 272884.00 | 302726.00 | 313476.00 |
| Current Account Balance at Constant Price | 27474.00 | 40493.00 | 29645.00 |
Requirements:
- Complete table 2, based on in table 1 data.
Table 2
| GDP at Constant Prices | |||
| Net Transfers | |||
| GDP Growth Rate | |||
| GNP |
2. Complete Table 3 based the following statistics and your results in table 2 (GDP at constant price).
Table 3 United Arab Emirates Economic Variables, 2017– 2019
| Economic Variable | 2017 | 2018 | 2019* |
| Population ( in number) | 9,304,000 | 9,367,000 | 9,504,000 |
| Gross Domestic Product at Current Prices
(Nominal, in Million $) |
385,606 | 422,215 | 421,142 |
| GDP ( At Constant price calculated in table2)( Real in Million $) | |||
| GDP Deflator | |||
| Inflation rate (based on deflator) | – | ||
| C.P.I (2014 = 100) | 107.8 | 111.1 | 109 |
| Inflation rate (based on CPI) | – | ||
| GDP Per Capita in thousands. | |||
| Annual Average Salary at current price
(Nominal in $) |
20,523 | 21,077 | 21,054 |
| Average Nominal Interest rate on credits | 5.50% | 5% | |
| Average real Interest rate on credits | |||
| Average Nominal Interest rate on deposits | 1.80% | 1.60% | |
| Average real Interest rate on deposits | |||
| Annual Average Salary in 2019 $ |
3. A worldwide recession (-4.5%) is expected during 2020 due to Covid-19. Assuming that the UAE experiences the same slowdown as the average for the world, what would be the UAE GDP in constant prices in the year 2020. (1 Mark)
4. Explain the different inflation rates obtained based on the CPI method and the inflation rates based on the GDP deflator method. (1 Mark)
.
5. (Bonus question) Illustrate graphically the GDP fluctuation during the period 2017-2020. (1 Mark)
In: Economics
